On 11th January, 2025, Ghana’s new president, His Excellency John Dramani Mahama announced a reduction in the number of government ministries from thirty (30) to twenty-three (23).

This major policy reform measure is consistent with the National Democratic Congress’s (NDC) campaign promise to downsize government by appointing no more than sixty (60) Ministers as a strategy to streamline government operations and reduce public spending.

The last New Patriotic Party (NPP) government, under President Nana Addo Dankwa Akufo-Addo operated thirty (30) ministries with 129 ministers in 2017. However, this number was significantly reduced to eighty-five (85) ministers by 2024, mainly in response to the need for reforms under the current International Monetary Fund (IMF) program.

The unprecedented policy decision has elicited varied reactions from policy experts and the ordinary Ghanaian. These reactions reflect optimism for potential government efficiency, as well as scepticism about the real impact on public spending.

Some economic experts agree that the reduction in the number of ministers is an indication of the commitment of the new president to run government with 60 ministers.

This also demonstrates the president’s commitment to streamlining government, reducing inefficiency, and focusing on delivering better governance outcomes.

Downsizing government can potentially stabilize the economy and improve the country's fiscal health in the short to medium term for Ghana, a country under IMF program. Several empirical studies indicate that a lean government contributes to lower deficits, better fiscal health, improved governance and stronger economic performance through efficient, accountable, and prudent spending (IMF 2010; OECD 2012 and World Bank 2000).

Under the current IMF program, Ghana is seeking to reduce its debt by $4.7 billion and $4.4 billion in cash flow relief.

For this end, a small government can inspire hope in the economy by signalling the country’s commitment to fiscal responsibility, efficiency, long-term stability, as well as positive signals to local and international creditors.

A 2014 Afrobarometer survey shows that Ghanaians may be willing to pay higher taxes to support development if they trust the government's effective use of tax revenues and the delivery of quality public services (Afrobarometer 2014).

The reduction in the number ministries which will reflect in the comparatively lower number of government ministers will demonstrate government commitment to cutting public expenditure to enhance public trust and support for the system.

This measure will also reassure the public that resources are allocated more efficiently and that measures are being taken to avoid excessive debt and financial crises.

This commitment can foster a sense of trust, as citizens see their leaders prioritizing sustainable development and the well-being of future generations.

Furthermore, reducing public expenditure can lead to a more effective public services, lower taxes, and improved economic conditions, all of which directly benefit the citizens, and result in a more positive relationship between the government and its people.

However, it will take real leadership to reduce public expenditure in a lean government. According to Mr Kwesi Jonah, a Senior Research Fellow at the Institute for Democratic Governance, the reduction in the number ministries which will ultimately lead to a reduced number of ministers is a very good idea.

He however, advises the President to remain committed to the actual policy intent of cutting expenditure. He noted that political patronage is a significant feature in many African countries, including Ghana where political appointments are used to reward party supporters through jobs and other benefits.

He, however, expressed optimism that Prez Mahama will avoid the situation where the number of potential appointees to the ministries that have been merged or scrapped will be ‘catered for in other areas in of government’ which will defeat the real intention to save public cost.